Equatorial Energia (EQTL3) Q1 2026 earnings summary

Executive summary

• Adjusted consolidated EBITDA rose 11.3% year-over-year to R$2.9 billion, driven by distribution, equity income from SABESP, and operational quality improvements.

• Net operating revenues increased 12% to R$12.75 billion, with margin expansion in key distribution subsidiaries.

• Adjusted net income fell 23.6% year-over-year to R$359 million, mainly due to higher financial expenses and non-recurring effects.

• Investments totaled R$2.6 billion, up 12.2% from 1Q25, focused on distribution projects.

• Concession renewals secured for Pará (until 2058) and Maranhão (until 2060), reinforcing long-term stability.

Financial highlights

• Net revenue reached R$12.75 billion (+12% YoY); adjusted EBITDA R$2.9 billion (+11.3% YoY); net income R$424 million (-23.7% YoY); adjusted net income R$359 million (-23.6% YoY).

• EBITDA margin was stable at 22.6%; adjusted gross margin rose 13% to R$4.35 billion, mainly from distribution.

• Net debt/EBITDA improved to 2.7x (or 3.1x excluding transmission gain); cash position at R$11.6 billion, 2.5x short-term debt.

• Early redemption of preferred shares totaled R$607 million, leaving only Class C outstanding.

• Raised R$4.9 billion YTD, extending average debt maturity and reducing cost.

Outlook and guidance

• Management expects further EBITDA expansion with upcoming tariff reviews, continued investment in distribution, and operational improvements.

• Plans to maintain comfortable leverage and strong cash position amid high interest rates and volatility.

• Focus remains on regulatory compliance, operational resilience, and leveraging ESG initiatives.